US Banks Discuss Launching Joint Stablecoin Amid Crypto Boom
Major US banks including JPMorgan Chase, Bank of America, and Citigroup are reportedly in early discussions to develop a joint stablecoin. The goal is to respond to growing competition from crypto-native payment systems and big tech stablecoin projects.
Why Now?
Stablecoins are increasingly used for fast, low-cost transfers and cross-border payments. Their rise has threatened traditional banking models, prompting legacy institutions to consider launching their own digital currency.
Who’s Involved?
The project is said to include Early Warning Services, the company behind Zelle, and The Clearing House. These firms are foundational to US payments infrastructure, making this a potentially powerful collaboration.
Regulatory Environment is Key
The timing coincides with legislative progress on the GENIUS Act, a proposed bill that would provide regulatory clarity for stablecoin issuers. The bill recently passed a procedural vote in the Senate and has gained bipartisan support.
Potential Impact
A bank-backed stablecoin could offer a more regulated alternative to existing stablecoins like Tether or USDC. However, critics argue that it could also stifle innovation or lead to excessive control over financial transactions.
Final Note
With both regulatory and technological momentum building, this joint stablecoin effort by US banks could reshape digital finance. It’s a clear signal that traditional institutions are taking crypto competition seriously.
